Amazon Business is on track to hit US$10bn sales

After hitting US$1tn market cap for the first time, Amazon is poised to record another feat this year with its own marketplace Amazon Business.

In a recent blog, the group said Amazon Business is on track to record more than $10bn in annualised sales this year. The service, which Amazon launched just three years ago, has already expanded its corporate clientele to include 55 of Fortune 100 companies, most of which depend on Amazon Business for office supplies and lab equipment.

Amazon Business history
Amazon Business was launched in 2015, replacing the Amazon Supply service which had been running since 2012. According to CNBC, Amazon Business was able to reach US$1bn in sales in just one year.

The same CNBC report said business-to-business sales have been the major bread and butter for the group, along with consumer retail and cloud computing services. In 2017, Amazon recorded a US$177bn.

Amazon Business reported a faster growth trajectory than its consumer marketplace counterpart. What it achieved within four years took Amazon Web Services 10 years to do.

"We believe Amazon B2B over the very long term has the potential to surpass the size of the core B2C segment, and remains an under-appreciated opportunity by many investors," industry watcher and analyst Colin Sebastian told CNBC.

Future plans
Amazon announced that it has expanded Amazon Business' global marketplace to France, Italy, and Spain.

"Companies can easily manage their procurement needs and purchase supplies locally where Amazon Business is available. Sellers have the opportunity to grow their businesses by reaching new customers across these eight countries, from small companies to multi-national organizations," it said.

Along with expansion plans, the group eyes improving its services further by introducing a slew of updates and features to ensure transparency in the procurement process. This will include Business Prime Shopping, Curation and Workflow Approvals.

"We are able to integrate directly into e-procurement systems and create intuitive-buying experiences," the group said.

Also included in its priorities is the strengthening of its third-party sellers' ability to reach more customers. This segment comprises more than 50% of its global sales.

"Year after year, our biggest learnings come directly from customer and seller feedback. Looking ahead, we remain focused on innovation on their behalf, to deliver features they need to be successful. It is still day one for us, and we’re excited about what’s to come," Amazon said.